Schumer: Cut taxes on craft brewers

Monday

Dec 2, 2013 at 6:35 PM

By Derrick Ekek@the-leader.com

U.S. Sen. Chuck Schumer stopped by Rooster Fish Brewing in downtown Watkins Glen on Monday morning, but he wasn't there for a pint of Dog Tooth Pale Ale.Rather, Schumer was touting a piece of federal legislation that would slash the excise tax on craft beer, which he says would be "a real shot in the arm" for small breweries in the Southern Tier and Finger Lakes.New York's senior senator is a co-sponsor of the Small BREW (Brewer Reinvestment and Expanding Workforce) Act, which would cut the federal tax in half on the first 60,000 barrels sold by craft brewers in a year, from $7 per barrel to $3.50 per barrel.The idea is to encourage small craft brewers to buy new equipment, expand production and add jobs, Schumer says.Rooster Fish Brewing is a great example of the type of microbrewery the Small BREW Act is designed to help, he added.Owner Doug Thayer used to make his beer in the back of his North Franklin Street pub, the Crooked Rooster. He recently bought and remodeled the former Watkins Glen fire station just down the block and invested heavily in brewing equipment, including a bottling line that is about to start production."We needed to expand because we'd exceeded our capacity substantially," Thayer said.Thayer brews in the back, and he has 12 flavors of beer on tap in a tasting room in the front of the building, which also houses the Nickel's Pit BBQ restaurant operated by his son, Nick Thayer.Thayer says Rooster Fish will brew about 1,500 barrels this year, and that the Small BREW Act would have saved him about $5,000. He expects to boost production to about 3,000 barrels next year, so the tax break would save him $10,000 next year, although Schumer says he doesn't expect the tax cut to take effect until October 2014."It would be a huge help," Thayer said.New York is now the fifth-largest craft brewing state in the U.S., with about 70 small brewers, Schumer said."We're trying to create new jobs in upstate New York, and sometimes we think in traditional terms, but our craft breweries are a new way to do that, and are one of the fastest-growing areas for new jobs," Schumer said. "I think we now have about 70 small breweries, all around the state."They're a magnet for tourists who like to sample unique and flavorful local beers, Schumer said.The Small BREW Act has bipartisan support and has "a good chance" of getting passed, he said.Schumer also says he supports efforts in Congress to get rid of a Prohibition-era ban on shipping alcoholic beverages through the U.S. Postal Service. Right now, alcohol can be shipped by FedEx and UPS, but it's very expensive. If the ban were lifted, he said, breweries and wineries could boost sales by shipping out-of-state through the U.S. Postal Service, which offers a much cheaper flat rate.It would also help the Postal Service stay in business, he added."So, for example, you could have race fans from other states come to Watkins Glen International for the races, buy beer and wine and then ship it home," Schumer said.